Revenue threshold requiring cities to perform annual audits modification

This bill raises the annual revenue threshold requiring Minnesota cities with combined clerk and treasurer offices to conduct annual financial audits. It increases the current $150,000 threshold to $500,000 (adjusted annually for inflation), meaning cities with revenue below this amount will only need a financial audit every five years instead of annually. The change applies to audits performed for fiscal year 2026 and later, effective August 1, 2025. This directly affects smaller cities that previously met the lower threshold but now qualify for less frequent audits.